MPF or just normal saving?

[mistakes_maker]

What is your MPF invested in and when do you expect to withdraw?

Do you have any emergency funds and do you expect to need cash for a major event before MPF withdrawal. Do you have any other investments aside from may be property?

Reason I ask this, you can invest your savings in say HSBC ValueChoice for example outside of MPF if by chance you happen to be at HSBC. This gives you some flexibility of yih don't want to invest in an ETF.

If your employer has a matching scheme for voluntary contributions and no claw backs and short lock in period MPF is a easy choice because of the employer match.

Keeping money in a savings acct is a money loser over time, given inflationary effects. At a very minimum put it in some fixed deposit if you don't want to be in the stocks or bonds area. Say 10K every few months for 6 months duration and then you can either reinvest and compound or withdraw and go to Macau.

Thanks Shri. Would it make any difference to set up the voluntary contribution with my current MPF (Principal) or open a new account with HSBC? I'm not clear whether they offer same or different benefits. I do have savings account with HSBC though.

[shri]

Thanks Shri. Would it make any difference to set up the voluntary contribution with my current MPF (Principal) or open a new account with HSBC? I'm not clear whether they offer same or different benefits. I do have savings account with HSBC though.

I have no idea about the current state of MPF accounts / rules & regs related to contributions.

Hopefully some of the employed folks can contribute more meaningfully to this question.

[Beanieskis]

Thanks Shri. Would it make any difference to set up the voluntary contribution with my current MPF (Principal) or open a new account with HSBC? I'm not clear whether they offer same or different benefits. I do have savings account with HSBC though.

I think you can set up your TVC account with any provider, doesn't need to be same as your employer's, although sometimes your employer may have a deal on fees. I don't know if that extends to TVC accounts. I'd pick the one with lowest fees.

[newhkpr]

I think you can set up your TVC account with any provider, doesn't need to be same as your employer's, although sometimes your employer may have a deal on fees. I don't know if that extends to TVC accounts. I'd pick the one with lowest fees.

You are correct. TVC can be with any provider. And some (incl. HSBC) usually offer some bonus $$ for it. I've received several thousand over the last three years. (forget exact number but around 3-4000HKD)

[pin]

I think you can set up your TVC account with any provider, doesn't need to be same as your employer's, although sometimes your employer may have a deal on fees. I don't know if that extends to TVC accounts. I'd pick the one with lowest fees.

I was also of the mindset to pick the lowest fee fund (which is basically the DIS). However DIS (which is supposed to be a 60 / 40 split equity / bonds) while doing OK hasn't performed as well as a straight equity fund.

My view now is that you might as well stick your money in either an international or North American equity fund noting you are only investing a very small amount.

What I wouldn't recommend is spreading your money around several funds and keeping on chopping and changing them. Just stick to one fund and let that one keep on accumulating.

And yes fully appreciate that past performance can't guarantee future performance.

[Beanieskis]

I was also of the mindset to pick the lowest fee fund (which is basically the DIS). However DIS (which is supposed to be a 60 / 40 split equity / bonds) while doing OK hasn't performed as well as a straight equity fund.

My view now is that you might as well stick your money in either an international or North American equity fund noting you are only investing a very small amount.

What I wouldn't recommend is spreading your money around several funds and keeping on chopping and changing them. Just stick to one fund and let that one keep on accumulating.

And yes fully appreciate that past performance can't guarantee future performance.

Ah yes I should have clarified - I meant choose the provider with the lowest fees, rather than the funds with the lowest fees. Within the provider I've picked funds that invest in global equities and global bonds (which both have reasonable fees - not the lowest but by no means the highest), the split between my preferred equities:bonds ratio.

[seirin]

I'm with HSBC and the ValueChoice US fund is up as much as any SP500 one is

Actually I just checked. YTD the HSBC one is up 24.7%. VOO (Vanguard SP4500) is up 27%. So yea

That is terrible...

[periphery831]

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